Reverse charges scheme of service tax
This query is : Resolved
04 December 2012
If my company received service from advocate on legal matters but the advocate is not charged service tax on the fees because he is not laible to service tax for reason of his total recipts is less than 10 lakhs in the above case my company is liable to pay service tax under reverse charge scheme.
04 December 2012
Yes.
To the service enjoyer, the limit of Rs. 10 lacs p.a is irrelevant.
To the service enjoyer, the limit of Rs. 10 lacs p.a is irrelevant.
CA bhargava
(Expert)
06 December 2012
Here the point is not 10 lacs., as the service receiver is a company., and as per the reverse charge mechanism., any person (business entity) availing the services of the advocate will be liable to pay service tax on reverse charge., irrespective of the 10 lacs for the advocate.
But there is a saving to the entity., if the service receiver turnover is less than 10 lacs., then no need to pay..
But there is a saving to the entity., if the service receiver turnover is less than 10 lacs., then no need to pay..
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